Loans are a part of our everyday life. We see them with almost every aspect of the modern world. They’re the tools that help us in our times of financial crisis. Something so common and in so much demand always has a lot of questions surrounding it. With every type of loan from every type of company, there are various questions that people want answers to. The most popular type of loan in the market right now is an online payday loan that works with a bad credit score. By answering some questions and helping you with learning about online payday loans for bad credit, we are hoping to clear most of the confusion surrounding it. So let’s have a look at some frequently seen FAQs on the internet.
Does the credit score matter?
Anyone who tells you that credit score has absolutely no role to play is probably lying. A credit score does play a role but the procedure of online companies diminishes its importance. So when you apply for an online payday loan to a company, it links you up with a private agent. Unlike banks, these private lenders have an option to overlook the credit score. This increases the acceptance rate of online payday loans by a lot. It also decreases the weightage of the credit score in the whole process
How long is the process?
The time taken by online companies to provide you with an online payday loan is actually not long at all. It is a very quick and seamless process. The application form is supposed to be filled online which is quite brief. You can fill it in about 5 minutes after which the form is processed almost immediately. After the form is processed the money is transferred to your bank within 24 hours. The speed of the whole process is lightning fast compared to traditional institutions that sometimes take up to 2 weeks to release the money.
Do we have to provide a mortgage?
Most loaning companies still follow the age-old method of asking for a mortgage before providing a loan to the customer. Thankfully, online loaning companies that provide a payday loan do not ask for any type of mortgage. They look down upon these traditional ways of conducting business which disrupts the customer’s peace of mind.
Is the interest the same for everyone?
This doubt is very understandable as banks started the trend of levying different interest rates on different customers. They levy a lower interest rate for people with a high credit score while charging higher rates to customers with a comparatively lower interest rate. This malpractice is not seen with companies that provide online payday loans as they mostly charge the same interest rate to everyone without discrimination.
The internet is filled with FAQs regarding online payday loans but the aforementioned questions are the most popular. Going through just these 4 questions will clear up a lot of common doubts regarding online payday loans and the functioning of the companies that provide them.
